Base metal prices on the Shanghai Futures Exchange were mostly lower during Asian morning trading on Tuesday November 7, with nickel succumbing to profit-taking after its climb in the previous session.

The most-traded January nickel contract stood at 102,700 yuan ($15,484) per tonne as at 10:51am Shanghai time, down 530 yuan from the previous session’s close, with around 267,000 lots traded so far.

Open interest of the contract fell to 452,934 positions at 10:35am Shanghai time on Tuesday from 490,642 positions at Monday’s close. The liquidation by longs took place after the contract hit a record high of 103,410 yuan per tonne on Monday.

“The continuous surge in nickel prices is due to funds being optimistic about future demand for nickel sulphate,” China’s Galaxy Futures said late on Monday.

The SHFE copper price remained under pressure from rising domestic stocks and the upcoming low-consumption season. The most-traded January copper contract fell 80 yuan to 54,590 yuan per tonne on Tuesday, with around 128,000 lots of the contract traded so far.

Traditionally, September and October are peak consumption seasons in China, while usage declines during the country’s winter months (November to March).

“Copper prices are under pressure from further correction given the swift climb of the US dollar and a lack of fundamental reasons for funds to go long on the metal,” China’s Minmetals Jingyi Futures said on Monday.

But in the medium term, global economic recovery should provide support for the red metal, the futures broker added.

Other metals weaker, except lead

The SHFE December lead contract rose 40 yuan to 18,830 yuan per tonne.

The SHFE January aluminum contract fell 5 yuan to 16,155 yuan per tonne.

The SHFE January zinc contract dipped 135 yuan to 25,860 yuan per tonne.

The SHFE January tin contract slipped 1,120 yuan to 143,100 yuan per tonne.

Currency moves and data releases

The dollar index was up 0.04% at 94.78 as of 10:20am Shanghai time.

In other commodities, the Brent crude oil spot price increased 0.11% to $64.10 per barrel as at 10:19am Shanghai time.

In equities, the Shanghai Composite index rose 0.68% to 3,411.24.

In European Union data from Monday, the producer price index was recorded at 0.6% for September, up from 0.3% in the previous month, and the Sentix investor confidence was at 34.0 for October, up from 29.7 previously. German factory orders increased 1% in September, against a forecast 1% decline.

Key economic due later today includes the IBD/TIPP economic optimism and Jolts job openings from the United States.

In addition, European Central Bank (ECB) president Mario Draghi is due to deliver opening remarks at the ECB Forum in Germany, while US Federal Reserve chair Janet Yellen is speaking in Washington DC, US.